09
Dec
Li Sanxi, a researcher at the National Academy of Development and Strategy and professor at the School of Economics at Renmin University of China, as well as a Young Cheung Kong Scholar of the Ministry of Education, published an article in “Guangming Daily”. The key points of the article are as follows:
The digital economy, with its unique new models, organizations, and concepts, deeply permeates various fields of human economics, politics, and culture, profoundly changing human interaction methods and production-living patterns, and fundamentally reshaping economic systems. Existing economic theories urgently need to incorporate the unique elements of the digital economy into their analytical frameworks and explore its far-reaching impacts on the entire economic system. Moreover, China’s unique development path, rich experiences, and specific challenges in the digital economy are markedly distinct from those of other countries. This calls for the construction of a theoretical system that accurately reflects the unique laws and practical experiences of China’s digital economy, i.e., a theory of the digital economy with Chinese characteristics.
To build a theoretical system of the digital economy with Chinese characteristics, it is essential to first summarize and distill the typical features of China’s digital economy development. The main characteristics of China’s digital economy development are as follows:
Strong Momentum in Digital Economy Development
From 2012 to 2023, the growth rate of China’s digital economy has consistently been significantly higher than the GDP growth rate for the same period. In 2022, China’s digital economy grew by 10.3% year-on-year, surpassing the overall growth rate of 51 major global economies, which was 7.4%. The digital economy has become a key driver of China’s economic growth. More importantly, compared to other countries, China not only leads in terms of total digital economy size but also demonstrates unique advantages in development models, technological innovation, and more, achieving both qualitative and quantitative improvements.
Outstanding Innovation in Business Models
Through relentless localized exploration and continuous accumulation of innovative experience, Chinese enterprises have made a remarkable transition from learning and borrowing to independent innovation in the business models of the digital economy. They have nurtured a series of digital products and services with independent intellectual property rights and strong market competitiveness. Many Chinese enterprises have stood out in the global wave of business model innovation in the digital economy, becoming leaders and contributing significantly to the prosperity and development of China’s and the global digital economy.
Creatively Establishing Data as a Production Factor
The Fourth Plenary Session of the 19th Central Committee of the Communist Party of China formally recognized data as a new production factor, marking the beginning of a new chapter in the marketization of data as a factor of production. Since then, the central government has issued a series of policy documents aimed at accelerating the marketization of data allocation, innovating the development and utilization mechanisms for data, and establishing and improving the data property rights system to fully release the value of data. In July 2024, the Third Plenary Session of the 20th Central Committee further proposed “improving the system and rules of factor markets, promoting the smooth flow of production factors”, and “cultivating a nationwide integrated technology and data market”. These initiatives not only provide a solid institutional guarantee for the development of China’s digital economy but also offer a Chinese solution for global data governance.
Integration of the Digital and Real Economies as a Key Driver of High-Quality Digital Economy Development
China places special emphasis on the deep integration of digital technologies with the real economy, using digitalization to transform and upgrade traditional industries. In the manufacturing sector, the introduction of smart manufacturing and industrial internet technologies has significantly improved production efficiency and product quality. In agriculture, the use of IoT and big data technologies has led to precision farming and smart agriculture, increasing crop yields and resource utilization. In the service sector, the integration of online and offline services and smart logistics technologies has improved service quality, enhanced user experiences, and reduced logistics costs.
Strengthening Supervision, Optimizing the Market Environment, and Promoting Healthy Development of the Platform Economy
While China has implemented strong regulation of platform enterprises, it has also significantly optimized the competitive market environment for the platform economy. By setting up “red and green lights” and continually improving the normalization of platform economy regulation, China has adopted more stable, systematic, and preventive regulatory measures to effectively promote the healthy development of the platform economy.
At present, research on digital economy theory is progressing vigorously, yielding substantial results. However, there are still some shortcomings. The systematization and completeness of digital economy theory remain insufficient, making it difficult to comprehensively and deeply reveal the internal laws and mechanisms of digital economy operation. There is a need to enhance the systematization of digital economy theory and expand its scope. Existing research often focuses on specific issues within particular fields, offering explanations for these specific problems. It must be recognized that the impact and transformation of the digital economy on the operation of the economy and society is unprecedented. Its disruptive nature manifests in multiple aspects, such as the profound impact of technological changes on economic and social structures, and the significant changes in productivity brought about by data as a new production factor. These transformations bring new problems and situations to economic development, forming new regularities. Therefore, digital economy research should work towards constructing a theoretical framework that can systematically distill the overall characteristics and operational laws of the digital economy.
Unlike previous industrial revolutions, in the Fourth Industrial Revolution driven mainly by digital technology, China leads in many digital economy fields that represent future trends. China has cultivated a group of globally leading digital enterprises and has formed emerging economic forms such as platform economy, gig economy, and sharing economy. It has accumulated rich practical experience in areas such as data factor value release, digital industrialization, digital transformation of industries, and digital governance. These valuable experiences and cases provide a solid foundation and rich material for promoting theoretical innovation and forming a digital economy theory with Chinese characteristics.
To advance theoretical innovation based on China’s national conditions and construct a digital economy theory with Chinese characteristics, the following themes should be explored in depth:
Correctly Understanding and Managing the Relationship Between Government and Market in the Digital Economy Era
This involves exploring how the digital economy can better serve the Chinese model of modernization and contribute to achieving the goals of Chinese-style modernization.
Solving the Basic Theoretical Issues of Data as a Factor of Production
This includes investigating how data can be integrated into the processes of production, circulation, and distribution, and how it can effectively combine with other production factors.
Addressing New Issues Arising from Digital Technology, such as Market Monopolies, Data Security, the Digital Divide, and Labor Market Changes
This requires optimizing digital economy governance strategies and improving the effectiveness of digital governance to tackle these new challenges.
In-Depth Research on the Mechanisms and Pathways of the Integration of Digital and Real Economies
This involves exploring how digital technologies can enhance the efficiency, quality, and level of traditional industries, driving smart, green, and high-end development in these sectors.
To build a theoretical system of the digital economy with Chinese characteristics, it is necessary to summarize and distill the causal relationships verified in the digital economy context and the operational laws revealed, and further systematize and theoretically integrate these findings. This will form a comprehensive and complete digital economy theory. In terms of analytical methods, advanced tools such as big data, machine learning, natural language processing, network analysis, and artificial intelligence models should be actively used. With the development of digital technology, human social activities are becoming increasingly data-driven, and the rapid progress in computing power and algorithms has made it possible for economists to conduct research using big data. Applying big data methods helps construct economic theories that are more aligned with reality and better reflect the complexity of the economy and society. In particular, artificial intelligence technology can, to some extent, overcome the limitations of mathematical modeling in describing complex economic systems.
(Translated by ZHANG Yuqing; Proofread by YANG Fanxin)
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